Asian players evaluate Taiwanese major’s April PVC announcement
The producer elected to increase its April offers by $20/ton to all markets when compared to March, bringing its new prices to $1030/ton CIF India, cash and at $970/ton CFR China/CIF SEA, cash.
Following the announcement, several Asian players evaluated the new announcement and shared their anticipations on how the PVC market will respond to the hike decision.
An Indian converter stated, “Although the Taiwanese major’s increase amount is within our expectations, we are not planning to make purchases from them as local prices in India are lower than their current levels.”
A Taiwanese trader noted, “The Taiwanese major’s new offer is subject to a $10/ton of discount for purchases at and above 500 tons.”
A Malaysian trader opined, “We think that the $970/ton level to China and Southeast Asia is unworkable when the current market conditions are considered. Therefore, we prefer to wait and see how other players will respond to this new level. Meanwhile, we believe that our Chinese supplier will probably apply a similar hike amount.”
A source from a Chinese producer commented, “We think the Taiwanese major’s recent offer is not workable as local prices in China is lower. Plus, demand in China is quite poor while inventory levels are still reportedly high.”
An Indonesian converter, on the other hand, said, “We think the recent hike is still acceptable, but PVC consumers started to voice concerns.”
A Vietnamese producer said, “Following the Taiwanese major’s hike decision, we will have to adjust our local PVC offers up either this week or next week. We think a $20/ton of increase is workable in Vietnam as demand is gradually improving in line with the warmer weather.”
A Philippine trader stated, “We think local PVC offers may continue to increase as they will follow the Taiwanese major’s hike decision.”
A Thai converter also commented, “The Taiwanese major’s offer level to Southeast Asia and China is close to the local PVC prices in Thailand. After this hike decision, we believe local offers in Thailand will increase as well.
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